In this article, we will list the 5 Best Underperforming Tech Stocks to Buy for a Turnaround. Please visit 10 Best Underperforming Tech Stocks to Buy for a Turnaround if you’d like to see an extended list.
To build our list of the 10 Best Underperforming Tech Stocks to Buy for a Turnaround, we screened technology stocks that had meaningfully lagged the broader market or traded well below their recent highs, while still having credible recovery catalysts such as improving fundamentals, analyst upside, AI-related product shifts, or resilient core demand. We then ranked the stocks in descending order of short interest as a percentage of float.
5. ServiceNow, Inc. (NYSE:NOW)
Short Percentage of Float: 4.79%
ServiceNow, Inc. (NYSE:NOW) is one of the best underperforming tech stocks to buy for a turnaround. The latest support for the recovery case came on May 19, when Bank of America reinstated coverage of ServiceNow with a Buy rating and a $130 price target. Barron’s reported that BofA viewed ServiceNow as an AI beneficiary because its workflow platform is deeply embedded in enterprise systems, making it harder to displace as companies deploy AI agents. The stock rose sharply after the note, but was still down about 32% in 2026, keeping the underperformance angle intact.
Copyright: welcomia / 123RF Stock Photo
The product case also improved on May 5, when ServiceNow launched Action Fabric, opening its “system of action” to AI agents built on ServiceNow, Claude, Copilot, or customers’ own stacks through its generally available Model Context Protocol server. The idea is that AI agents should not just read enterprise data, but execute governed work through approvals, workflows, audit trails, identity controls, and role-based permissions. That fits the turnaround thesis because AI could increase the need for ServiceNow’s orchestration layer rather than make it obsolete.
There are still risks. Reuters reported on April 22 that the stock fell after delays to the Middle East deal hurt first-quarter subscription revenue growth. However, ServiceNow also raised its 2026 subscription revenue outlook, reported $3.77 billion in first-quarter revenue, and beat earnings expectations.
ServiceNow, Inc. (NYSE:NOW) provides an AI-enabled enterprise platform for workflows across IT, security, risk, HR, finance, legal, procurement, customer service, and related business functions.
4. Adobe Inc. (NASDAQ:ADBE)
Short Percentage of Float: 4.31%
Adobe Inc. (NASDAQ:ADBE) is one of the best underperforming tech stocks to buy for a turnaround. Adobe fits the setup because the stock has been caught in the broader software selloff tied to AI disruption fears. Reuters reported on April 20 that Adobe shares were down about 30% in 2026 as investors weighed whether autonomous AI tools from companies such as Anthropic and OpenAI could pressure traditional software and design products.
The freshest product support came on May 6, when Adobe unveiled its new productivity agent, bringing Acrobat document intelligence into an agentic interface that can help users work with PDFs, surface insights, and create presentations, podcasts, blogs, and social posts from documents. Adobe said the tool is part of a broader agentic strategy across documents, data, and systems, which helps frame AI as a product expansion opportunity rather than just a competitive threat.
Adobe also moved to strengthen its enterprise AI case on April 28 by completing its acquisition of Semrush, adding brand visibility capabilities as AI interfaces and agents become more important in how customers discover and evaluate brands. That followed Reuters’ April 21 report that Adobe authorized a $25 billion buyback through April 2030, a signal of management confidence as the company works to reassure investors on its AI strategy.
Adobe Inc. (NASDAQ:ADBE) provides creative, document, productivity, customer-experience, and AI software through products and platforms, including Creative Cloud, Acrobat, Adobe Express, Firefly, and Adobe Experience Cloud.
3. Q2 Holdings, Inc. (NYSE:QTWO)
Short Percentage of Float: 3.87%
Q2 Holdings, Inc. (NYSE:QTWO) is one of the best underperforming tech stocks to buy for a turnaround. The digital banking software company fits the setup after a sharp reset: QTWO closed at $46.88 on May 18, compared with a 52-week high of $96.68, while analysts still carried a Buy rating and an average price target of $74.31. That leaves the stock priced for skepticism, but not without recovery fuel.
The latest fundamental support came on April 29, when Q2 reported first-quarter revenue of $216.5 million, up 14% year-over-year, and adjusted EBITDA of $60.0 million, up from $40.7 million a year earlier. The company also said it signed nine Enterprise and Tier 1 contracts in the quarter, posted record first-quarter bookings, and lifted its 2026 guidance to revenue of $875 million to $882 million and adjusted EBITDA of $237 million to $242 million.
Q2 has also been pushing the AI angle into practical banking use cases. On April 28, it launched Q2 Treasury Fulfillment to automate treasury-service onboarding for commercial clients, and on April 27, it added AI-enabled account takeover protection tools for real-time fraud detection and response. Earlier, on April 16, Q2 announced Q2 Code, a governed AI development environment built with Anthropic’s Claude Code and Amazon Bedrock to help financial institutions build platform extensions faster.
Q2 Holdings, Inc. (NYSE:QTWO) provides digital transformation solutions for banks, credit unions, alternative finance companies, and fintechs, including digital banking, fraud prevention, and data-driven engagement tools for consumer, small-business, and commercial clients.
2. Intuit Inc. (NASDAQ:INTU)
Short Percentage of Float: 3.74%
Intuit Inc. (NASDAQ:INTU) is one of the best underperforming tech stocks to buy for a turnaround. The stock fits the setup after a steep reset: As of May 18, Intuit closed at $403.16, still about 50% below its 52-week high of $813.70 from July 30, 2025. That weakness leaves the company in the penalty box even as Wall Street remains broadly constructive, with MarketBeat showing a Moderate Buy rating and an average price target of $634.26.
The most recent support for the turnaround case came on May 13, when Intuit announced new AI-driven enhancements to the Intuit Enterprise Suite, including multi-entity close automation, dimensional reporting, construction-specific tools, and integrated human capital management capabilities. The company positioned the suite as an AI-native ERP command center for mid-market businesses, with a new conversational chat interface meant to automate recurring finance tasks through virtual AI agents.
That followed Intuit’s May 6 launch of QuickBooks Workforce, which expands the company’s reach beyond accounting and tax into payroll, hiring, time tracking, benefits, and broader workforce management for small and mid-market businesses. For a beaten-down software name, the turnaround case is that AI strengthens Intuit’s financial workflow platform rather than replacing it.
Intuit Inc. (NASDAQ:INTU) is a global financial technology platform behind TurboTax, Credit Karma, QuickBooks, Mailchimp, and Intuit Enterprise Suite, serving about 100 million customers worldwide.
1. Fidelity National Information Services, Inc. (NYSE:FIS)
Short Percentage of Float: 3.32%
Fidelity National Information Services, Inc. (NYSE:FIS) is one of the best underperforming tech stocks to buy for a turnaround. The stock clearly fits the reset theme. FIS was trading at $43.37 on May 18, near the low end of its 52-week range of $41.33 to $82.74, while analysts still held a Moderate Buy rating and an average price target of $61.57, per Marketbeat.
The freshest support came on May 12, when FIS said its Supply Chain Finance Platform had been selected by Glencore to support a $2.55 billion oil-and-gas trade receivables securitization. FIS said the platform provides technology infrastructure, reporting, and operational support for the multi-jurisdiction transaction, including real-time monitoring and receivables reporting.
That followed another large-client win on May 10, when Commonwealth Bank of Australia selected FIS Data Integrity Manager to automate reconciliations across the bank. FIS said the SaaS platform, delivered through Microsoft Azure, will process more than 150 million transactions daily on a single system.
The company also gave investors a stronger earnings base on May 8, reporting first-quarter revenue of $3.3 billion, up 30% year-over-year, and adjusted EPS of $1.36, up 12%. FIS reiterated its full-year outlook, including adjusted revenue growth of 30% to 31% and free cash flow growth of 27% to 33%.
Fidelity National Information Services, Inc. (NYSE:FIS) provides financial technology solutions to financial institutions and businesses, helping clients run payments, banking, investing, risk, compliance, and related money-movement operations.
While we acknowledge the potential of FIS to grow, our conviction lies in the belief that some other AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FIS and that has 100x upside potential, check out our report about the cheapest AI stock.
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